TN Govt puts the Factories Amendment Bill 2023 on hold

Business MInutes

Faced with criticism from trade unions, the Tamil Nadu government has decided to halt the Factories Amendment Bill 2023. The bill, which increased manufacturing workers' working hours from eight to twelve hours, was passed last Friday and was seen as an attempt to entice international investment.

The decision to put the Bill on hold was made public late Monday evening. After the bill was passed, unions supported by the ruling DMK and its allies, notably the Congress and the Left parties, protested. Sectors such as computer technology, electronics, textiles and non-leather footwear may have benefited from the change. The measure stipulated 12 hours of work per week, four days of work and three days off. 

Trade unions said that the bill might be abused by companies and is anti-labour. “It will be disastrous for the workers in the state, as well as causing absolute anarchy in industrial relations management,” the Centre of Indian Trade Unions (CITU) wrote to Tamil Nadu Chief Minister M K Stalin in a letter. Following demonstrations, Stalin guaranteed that his administration will take into account all of the Unions' concerns.

On 24 February, Karnataka became the first state to allow 12-hour shifts in manufacturing and women to work at night. Tamil Nadu's move was to compete with the other states in order to attract more investments.


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